HSBC analysts suggest that the market was anticipating that the US Fed will turn neutral in 2019 and the USD was expected to weaken, but the market is slowly coming round to HSBC’s way of thinking who were holding the opposite way as of markets.
Key Quotes
“This week in particular has seen pivots from two of the G10 central banks shifting from normalisation to neutral. This is weighing on their respective currencies, and supporting the USD.”
“The USD will benefit from currency weakness elsewhere, as the Fed’s pivot has already been fully priced in, in our view.”
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